According to the latest report conducted by the ATG, illegal gambling in Sweden is on the rise despite ongoing regulatory efforts.
More specifically, a major chunk of betting activity in Sweden is still outside the regulated gambling framework, with the report showing a minor but concerning increase in illegal gambling activity.
The ATG disclosed that the channeling rate regarding the percentage of wagers placed via licensed gambling operators stood between 69% and 82% during the fourth quarter of 2024. Despite the high percentage, this figure is far from the government’s target of 90%.
Hasse Lord Skarplöth, Chief Executive Officer of the ATG, commented on this worrying trend and said that it is unacceptable that such a large chunk of the gambling activity still takes place outside of the legal licensing system, highlighting that illegal gambling poses a risk to Swedish players, encourages money laundering, and its turnover is as much as the costs of Swedish primary schools.
It is unreasonable that such a large proportion of gambling still takes place outside the licensing system. Unlicensed gambling is a breeding ground for money laundering, but above all, Swedish players are without protection from rogue operators. The annual turnover of unlicensed gambling is almost as much as the entire Swedish primary school costs.
What makes this matter particularly concerning is that visits to illegal gambling websites have increased tenfold since the re-regulation of the Swedish gambling market in 2019, with black market operators generating an estimated $14.7 billion per year.
Moreover, the ATG’s report revealed that 17 out of 20 of the largest illegal gambling websites in Sweden use the same platform as licensed casinos, noting that this should not be possible under the current gambling laws in the country.
Additionally, 6 of these 20 websites allowed direct transactions through Swedish bank accounts via BankID, whereas two were added to the prohibition list of the Spelinspektionen, the Swedish Gambling Authority.
This report by the ATG comes after the report of the National Audit Office, which criticized the Spelinspektionen for not doing enough to prevent illegal operators, stating that the current regulations are simply not doing enough as the regulator promised during the re-regulation of the market in 2019.
